X7D

X7Deposit (X7D)

A wrapped ETH token will exist to encourage capital injection into the Lending Pool. Users will mint these X7Deposit tokens at a 1:1 face value of ETH.

In the beginning of the X7 ecosystem, this will be similar to holding ETH, and there will be zero risk to adding ETH to the Lending Pool.

X7Deposit tokens may be staked for rewards in the form of a perpetual annuity that performs against the growth of liquidity within the system.

Tokenized X7D Deposits

When X7Deposit is staked an NFT is generated which records the following:

1. Amount of X7D it is redeemable for
2. The locked liquidity floor price of the constellation tokens
3. The X7D Token lockup period

After the maturity date, the holder of the NFT will be able to withdraw profit and restake or withdraw their X7Deposit.

Profits are determined by comparing the locked liquidity floor price of the constellation tokens at staking time to the current locked liquidity floor price. A large portion of the lending proceeds will go towards buying back and adding locked liquidity to the constellation tokens. This activity provides a mechanism for calculating an actual return that reflects the profit from lending.

Staked X7D NFTs will have an intrinsic value above the X7D/ETH redemption face value and may be traded on NFT markets as a form of a future on the Lending Pool returns.